Meeting_Body
CONSTRUCTION COMMITTEE
MAY 17, 2018
Subject
SUBJECT: 2018 LOS ANGELES CONSTRUCTION MARKET
ANALYSIS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the 2018 Los Angeles Construction Market Analysis report.
Issue
ISSUE
The construction market in the Southern California region has been growing rapidly. Metro alone has a $16.8 billion (and growing) capital program underway. Other major construction initiatives are being done by Los Angeles World Airports (LAWA), Caltrans, the City of Los Angeles, Los Angeles County, the 2028 Olympics, Metropolitan Water District and numerous private sector initiatives.
To better understand the factors influencing construction bid prices and Metro's ability to deliver the largest transportation construction program in the country, a construction market analysis was conducted. Current and future market conditions were assessed to identify factors influencing construction bidding activities and our ability to deliver Metro's capital program, including projects approved as part of Measure M and the 28 by 2028 initiative.
Discussion
DISCUSSION
The 2018 Los Angeles Construction Market Analysis report was a comprehensive analysis of the construction market factors and trends since the last report that was completed and presented to the Board in September 2015. The construction market analysis objectives were to gather information to evaluate the global, national, regional, and local economy as it relates to construction cost and bidding trends, the current and future amount of construction activities in the region and measure its impact on the proposed work in the region, the macroeconomic employment trends and skilled labor availability, the current trends in bid prices versus engineer's estimates, the number of bidders in the region, and gather feedback from contractors in regards to Metro specific contracts, processes, and procedures that may influence construction bid pr...
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